Favorable exchange rate of US dollars against Bangladeshi currency has boosted Bangladesh’s apparel export earnings.

According Bangladesh Bank (BB) data, the interbank exchange rate increased to Tk 86.7 per dollar from Tk85 in January.

To be competitive in the global export markets, exporters had been demanding the devaluation of the Taka as competitors were enjoying extra benefits due to the depreciation of their currencies.

ShahidullahAzim, Vice President, Bangladesh Garment Manufacturers and Exporters Association (BGMEA) says, competitors are becoming stronger as their currencies depreciated more than that of Bangladesh. As a result, exporters are losing work orders to some extent as they can offer fewer prices taking the benefits of devaluation of their currencies, said the business leader.

Exporters are not getting the full-fledged benefits of devaluation of Bangladesh currency against the USD as the bankers are charging higher for imports of raw materials, sector people claimed.

Exporters are also suffering as the import costs of raw materials increasedas banks increased interest rates.

AB MirzaAzizul Islam, Economist and Former Advisor to Government, adds, the current exchange rate is favorable for exporters but it needs to be managed carefully so that the competitiveness of the exporters remains and they can beat others in the global market.

For the betterment of exporters, the sector people demanded Bangladesh Bank’s intervention to stop charging extra rates than the central bank rate.